Endo Health Solutions Goes Negative

Seth Jayson, The Motley Fool
Updated

Endo Health Solutions (NAS: ENDP) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Endo Health Solutions met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.


Gross margins shrank, operating margins expanded, net margins shrank.

Revenue details
 Endo Health Solutions logged revenue of $801.1 million. The 18 analysts polled by S&P Capital IQ expected to see revenue of $807.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.62. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.55 per share. Non-GAAP EPS of $1.62 for Q4 were 16% higher than the prior-year quarter's $1.40 per share. GAAP EPS were -$6.35 for Q4 compared to $0.30 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 61.6%, 170 basis points worse than the prior-year quarter. Operating margin was 31.2%, 230 basis points better than the prior-year quarter. Net margin was -89.4%, much worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $739.3 million. On the bottom line, the average EPS estimate is $1.15.

Next year's average estimate for revenue is $2.91 billion. The average EPS estimate is $4.52.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 423 members out of 444 rating the stock outperform, and 21 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Endo Health Solutions a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Endo Health Solutions is outperform, with an average price target of $34.41.

The article Endo Health Solutions Goes Negative originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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